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Cloud Computing “Plug & Work” IT

ApplicationsRedefining the HR Outsourcing Model

Reduce Cost, Engage Employees, and Scale Infrastructure

© 2011 Exponent Technologies, Inc.

Fidel Baca, Principal / CMOExponentHR • 214.987.4567 • www.exponenttechnologies.com

Our History

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2001

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Larry Lacerte develops first GL Software

First Tax Software

First IRS Electronic Filing Beta

First laser Tax Forms for HP

First common Tax Prep Library

First CD-ROM technology for Tax Prep

First Complete Tax Software library and documentation with REP capabilities via CD

First hosted Pay-as-you-go system (REP)

Sold Lacerte Tax Software to Intuit for 400+ million..Today 1 in 4 returns still prepared using Lacerte

First DOS/WIN cross-compatible platform

Larry Lacerte starts ExponentHR

ExponentHR -- Organization

Privately held and funded by Larry Lacerte Founded in 1978 by Larry Lacerte

o As Lacerte Software Corporation (GL and Tax)o Sold Lacerte Tax Software to Intuit in 1998o Started ExponentHR in 2001

• Changed name to Exponent Technologies, Inc.

Founding team for ExponentHRo Larry Lacerte, President / CEOo Randy Zeller, EVP / CFOo Fidel Baca, Principal / CMO

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What we were solving for…

Lack of granular/stratified cost management data Inability to view or correlate critical data sets Inefficient transactional processes with no audit

trail Inability to engage with distributed workforce Inability to scale current infrastructure HR unable to focus on valued business contribution Desire to outsource the HR function…

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Challenging Myths and Mindsets

‘HR is a cost center, not a critical part of the operation, and we don’t spend on HR technology for our business…’

‘We need to keep our systems in-house to secure our data and integrate with other systems….’

‘Employees are dumb, untrustworthy, or won’t self service...’

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Evolving Environments

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Employee Manager Service CenterHR HR Manager Employee

In-house applications

HR Employee

Employee

Finance

HR

Finance

Finance

DataRulesWorkflow

Manager

EmployeeHR

Manager

Manager

Where is HR Focus and Value

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Process vs Data Storage

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Balance Validation

Balance Validation DiscussDiscuss

Data to Payroll

Data to PayrollEmail

Request

Email Request

Generate

Reports

Generate

Reports

Reports to

Managers

Reports to

Managers

DataRules/AuditWorkflow

Notifications

Reporting

DataRules/AuditWorkflow

Notifications

Reporting

Employee

Request

Employee

Request

Paper Request

Paper Request

FinanceAccountin

g

FinanceAccountin

g

Human Resource

s

Human Resource

s

ManagerManager

ApprovalApproval

Reports to HR

Reports to HR

Reports to

Finance

Reports to

Finance

Process Payroll

Process PayrollEnter in

Payroll

Enter in Payroll

Audit Transaction

s

Audit Transaction

s

Update Balance Sheet

Update Balance Sheet

Anywhere, Anytime, Secure Access

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Data

Rules

Workflow

Single Application Multi-tenant

Business Model Benefits

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Benefit of fixed cost combined with recurring revenue

Development Pricing Extensibility

Enhancements expand platform and value Standardized servicing Prices come down over time Variable configurations Opportunity to enhance processes

Benefit to Clients

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Service Cost

Service Capabilities

Multi-tenant platformo Lower cost deliveryo Highly configurableo Highly scalableo Extensible features

Cloud-basedo Anywhere, anytime accesso Any browser deviceo Provides logistical and process opportunities

SaaS Platform Benefits

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Scope of Offering

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HR & Benefits Time / PTO / Payroll Job Costing Expense Communication Reporting ???????????????

Timeline

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Market Research

Business Plan and Platform Design

Proof of Concept Platform and Beta Clients

Development of Sales Model and Implementation Methodology

Direct Marketing in the 200 – 2,000 Space

Direct Marketing in the 50 – 5,000 Space

Direct Marketing Combined with VAR Distribution ModelEnhanced Engine

Expanded Regional Presence and adjusted price to market

BI ExpansionWeb ServicesExpanded VARsPricing Adjustment

Continue with Product Plan

Adjust staffing model and operating cost for economic conditions

Began building client side configuration tools for market expansion

Growth (400) Attrition (15)

Success Stories

Nearly 400 organizations, representing over 80,000 worksite employees in nearly every industry…

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